Correct!

If the liquidated damages clause were enforced, Lake River gets the difference between what it would have charged for the 22,500 ton minimum and what it did charge for the 8,000 tons actually delivered. That is: It gets the full contract price for the 14,500 tons of undelivered ferro carbo.

This begs the question of whether such an award would satisfy the requirements of the rule. We turn to that issue now.

Continue